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On Sun, 05 Oct 2008 03:26:30 +0000, Ich bin ein Amerikaner wrote:
> The financial difficulties this country is going through is not the
> fault of big business except for one factor, government's involvement.
yes cuz we can see just how well the five big wall street investment
banks did when the gov't allowed them to up their leverage to 30x1, gave
them enough rope to hang themselves
"Steven L." <s...@e...net> wrote in crayon...
>HiC wrote:
>> 700 billion of the taxpayer's money give or take to bail out these
>> supposedly public sector enterprises. So, what about the officers and
>> boards of directors of these various firms who were ultimately
>> responsible for the decisions that caused the problems? Theoreticaly
>> these are the people who bear the weight of responsibility for these
>> firms, isn't that why they're supposedly in these positions - and
>> getting the big payday?
>>
>> They're asking you and me to foot the bill, what are they who have
>> been profiting the most going to forfeit?
>
>In some cases, the CEOs were required to resign their positions. And as
>I understand it, the bailout bill prevents them from receiving any
>"golden parachutes." So they won't get attractive severance packages.
>
>And you and I are *NOT* going to "foot the bill" in the long term.
>Sooner or later (probably later), the housing market will bottom out and
>begin a new bull market in real estate. Then these mortgage-based
>securities that the Fed bought will appreciate rapidly in value (because
>they're leveraged). So who knows, you and I may even get a tax break
>from the profits from those deals.
>
>What the Fed is doing, is buying up all these assets that nobody else
>wants to buy right now because the housing market is still sinking. The
>Fed has the money and the power to be patient and wait for the housing
>market to turn around.
I have a problem with government calling the risky mortgages "assets."
That's how Fannie Mae executive made their bonuses. Fannie Mae was
created to provide liquidity to the mortgage market. It allowed
lenders to sell off their subprime mortgages (which by definition is a
risky loan) to Fannie Mae so they could make available more mortgage
lending. Fannie Mae also guaranteed subprime mortgages in a way a
private bank couldn't do.
Fannie Mae was created as part of the New Deal to open up lending
which froze up during the mortgage crisis during the Depression.
Fannie Mae coupled with the CRA was a recipe for disaster. Community
Reinvestment Act (or CRA), is a federal law that requires banks and
savings and loan associations to offer credit throughout their entire
market area. What made the CRA so devious was the changes made during
the Clinton years.
In July 1993 President Clinton asked regulators to reform the CRA in
order to reduce paperwork and reward performance. The CRA regulations
were substantially revised and featured requiring numerical
assessments to get a satisfactory CRA rating; using federal home-loan
data broken down by neighborhood, income group, and race; encouraging
community groups to complain when banks were not loaning enough to
specified neighborhood, income group, and race; allowing community
groups that marketed loans to targeted groups to collect a fee from
the banks.
One of those community groups that were enabled complain about
mortgage levels in their neighborhood was ACORN.
Stanley Kurtz, writer, commentator and an adjunct fellow of the Hudson
Institute and a Senior Fellow at the Ethics and Public Policy Center
said, "Well, ACORN really is at the root of the problem here. ACORN is
a group of community organizers, and they specialize in putting
pressure, really kind of intimidation tactics, on banks, to get these
banks to make high risk loans to low credit customers, and of course
that’s very much the source of this whole problem. And they do things
like breaking into the private offices of bank officials. They even
show up at the homes of bank officials, to scare them and their
families. They send demonstrators into lobbies of banks, all to get
banks to make these high risk loans to people with low credit."
Obama trained the leadership of organizers in ACORN in Chicago.
If government didn't get involved, the free market would allow banks
to set the standards for lending and let the institutions that gambled
with more liberal lending practices fail if they wrote bad loans.
The bailout is bailing out the bailer (Fannie Mae and Freddie Mac) of
who bailed out banks by buying their bad loans, a vicious cycle
indeed.
-
If American Liberals hated al Qaeda as much as they
hated President G.W. Bush, we'd have the War on
Terrorism already beat.
Steven L. wrote:
> HiC wrote:
>> 700 billion of the taxpayer's money give or take to bail out these
>> supposedly public sector enterprises. So, what about the officers and
>> boards of directors of these various firms who were ultimately
>> responsible for the decisions that caused the problems? Theoreticaly
>> these are the people who bear the weight of responsibility for these
>> firms, isn't that why they're supposedly in these positions - and
>> getting the big payday?
>>
>> They're asking you and me to foot the bill, what are they who have
>> been profiting the most going to forfeit?
>
> In some cases, the CEOs were required to resign their positions. And
> as I understand it, the bailout bill prevents them from receiving any
> "golden parachutes." So they won't get attractive severance packages.
>
> And you and I are *NOT* going to "foot the bill" in the long term.
> Sooner or later (probably later), the housing market will bottom out
> and begin a new bull market in real estate. Then these mortgage-based
> securities that the Fed bought will appreciate rapidly in value
> (because they're leveraged). So who knows, you and I may even get a
> tax break from the profits from those deals.
>
> What the Fed is doing, is buying up all these assets that nobody else
> wants to buy right now because the housing market is still sinking. The
> Fed has the money and the power to be patient and wait for the
> housing market to turn around.
The bil is so packed with pork that if you and the average "Joe Sixpack"
(wink) bothered to download and read it, you'd be outraged.
VW Self-Destruction over revved and broke a valve spring in the following
post:
> "Steven L." <s...@e...net> wrote in crayon...
>
>> HiC wrote:
>>> 700 billion of the taxpayer's money give or take to bail out these
>>> supposedly public sector enterprises. So, what about the officers
>>> and boards of directors of these various firms who were ultimately
>>> responsible for the decisions that caused the problems? Theoreticaly
>>> these are the people who bear the weight of responsibility for these
>>> firms, isn't that why they're supposedly in these positions - and
>>> getting the big payday?
>>>
>>> They're asking you and me to foot the bill, what are they who have
>>> been profiting the most going to forfeit?
>>
>> In some cases, the CEOs were required to resign their positions.
>> And as I understand it, the bailout bill prevents them from
>> receiving any "golden parachutes." So they won't get attractive
>> severance packages.
>>
>> And you and I are *NOT* going to "foot the bill" in the long term.
>> Sooner or later (probably later), the housing market will bottom out
>> and begin a new bull market in real estate. Then these
>> mortgage-based securities that the Fed bought will appreciate
>> rapidly in value (because they're leveraged). So who knows, you and
>> I may even get a tax break from the profits from those deals.
>>
>> What the Fed is doing, is buying up all these assets that nobody else
>> wants to buy right now because the housing market is still sinking.
>> The Fed has the money and the power to be patient and wait for the
>> housing market to turn around.
>
> I have a problem with government calling the risky mortgages "assets."
> That's how Fannie Mae executive made their bonuses.
That's how the executives at Bear Stearns, Lehman Brothers, Merrill Lynch,
et al made their bonuses: By trading in mortgage backed assets. The higher
the risk, the higher the potential reward. It all worked pretty well until
the whole house of cards (derivatives) came crashing down. It was a
liquidity crunch before it was a credit crunch.
"t...@j...com" <j...@s...net>
wrote in crayon...
>VW Self-Destruction over revved and broke a valve spring in the following
>post:
>
>> "Steven L." <s...@e...net> wrote in crayon...
>>
>>> HiC wrote:
>>>> 700 billion of the taxpayer's money give or take to bail out these
>>>> supposedly public sector enterprises. So, what about the officers
>>>> and boards of directors of these various firms who were ultimately
>>>> responsible for the decisions that caused the problems? Theoreticaly
>>>> these are the people who bear the weight of responsibility for these
>>>> firms, isn't that why they're supposedly in these positions - and
>>>> getting the big payday?
>>>>
>>>> They're asking you and me to foot the bill, what are they who have
>>>> been profiting the most going to forfeit?
>>>
>>> In some cases, the CEOs were required to resign their positions.
>>> And as I understand it, the bailout bill prevents them from
>>> receiving any "golden parachutes." So they won't get attractive
>>> severance packages.
>>>
>>> And you and I are *NOT* going to "foot the bill" in the long term.
>>> Sooner or later (probably later), the housing market will bottom out
>>> and begin a new bull market in real estate. Then these
>>> mortgage-based securities that the Fed bought will appreciate
>>> rapidly in value (because they're leveraged). So who knows, you and
>>> I may even get a tax break from the profits from those deals.
>>>
>>> What the Fed is doing, is buying up all these assets that nobody else
>>> wants to buy right now because the housing market is still sinking.
>>> The Fed has the money and the power to be patient and wait for the
>>> housing market to turn around.
>>
>> I have a problem with government calling the risky mortgages "assets."
>> That's how Fannie Mae executive made their bonuses.
>
>
>That's how the executives at Bear Stearns, Lehman Brothers, Merrill Lynch,
>et al made their bonuses: By trading in mortgage backed assets. The higher
>the risk, the higher the potential reward. It all worked pretty well until
>the whole house of cards (derivatives) came crashing down. It was a
>liquidity crunch before it was a credit crunch.
>
To give loans to people who wouldn't under normal situations qualify
for a loan is political correctness running amok. In normal
situations, if Fannie Mae and Freddie Mac did not have the net
government provided them, the free market would let them die and
finance institutions would follow the rules of common sense lending if
it weren't for the CRA.
-
If American Liberals hated al Qaeda as much as they
hated President G.W. Bush, we'd have the War on
Terrorism already beat.
On Sat, 04 Oct 2008 03:49:08 GMT, Ich bin ein Amerikaner
<I...@S...com> sayd the following:
>Robert Blass <b...@m...xcx> wrote without thinking...:
>
>>Republicans protect the wealthy and they are to blame for poverty and
>>despair of poor people.
>
>When was the last time a poor person started a new company or gave you
>a job?
Neal Boortz told you to say that.
I bet you get all your one-liners that have nothing to do with the
topic or question from the talk radio people.
It's possible to be working-poor, meaning you earn not enough in wages
to be above the poverty guidelines.
Who decided a burger flipper or janitor was not worth more than $8 per
hour? Was it the burger flipper?
Poverty is created by wealth.
On Sat, 04 Oct 2008 03:46:45 GMT, Ich bin ein Amerikaner
<I...@S...com> sayd the following:
>My favorite quote is from Barney Frank when oversight was proposed.
>
>”These two entities — Fannie Mae and Freddie Mac — are not facing any
>kind of financial crisis,” said Representative Barney Frank of
>Massachusetts, the ranking Democrat on the Financial Services
>Committee. ”The more people exaggerate these problems, the more
>pressure there is on these companies, the less we will see in terms of
>affordable housing.”
I bet you get all your wisdom from your hero O'reilly...
good little doggie....
On Sat, 04 Oct 2008 00:08:52 -0400, Balanced View <N...@n...net> sayd
the following:
>Ich bin ein Amerikaner wrote:
>> Mike <M...@l...localhost> wrote without thinking...:
>>
>>
>>> On Fri, 03 Oct 2008 16:25:58 +0000, Ich bin ein Amerikaner wrote:
>>>
>>>
>>>> Other rule changes gave Fannie and Freddie extraordinary leverage,
>>>> allowing them to hold just 2.5% of capital to back their investments,
>>>> vs. 10% for banks.
>>>>
>>> that's a huge part of the problem, 40x1 leverage which is even worse than
>>> what the investment banks were doing (30x1) which was already completely
>>> out of control. so when exactly did that happen & who to blame (dems or
>>> repubs?)
>>>
>>>
>> I blame Republicans for not following through on the warnings they
>> gave on Fannie and Freddie starting on 2001.
>>
>> I place most of the blame on the Dems because Fannie Mae and Freddie
>> Mac were creations by Democrats. Fannie Mae was created in 1938 as
>> part of Franklin Delano Roosevelt's New Deal. In order to prevent any
>> further monopolization of the market, a second GSE known as Freddie
>> Mac was created in 1970. Currently, Fannie Mae and Freddie Mac control
>> about 90 percent of the nation's secondary mortgage market. That's a
>> government monopoly.
>>
>> Fannie Mae and Freddie Mac worked with the CRA a Jimmy Carter feel
>> good legislation.
>>
>> Fannie Mae and Freddie Mac are the only two Fortune 500 companies that
>> are not required to inform the public about any financial difficulties
>> that they may be having. In the event that there was some sort of
>> financial collapse within either of these companies, U.S. taxpayers
>> could be held responsible for hundreds of billions of dollars in
>> outstanding debts.
>>
>> Any attempt to reform the oversight of Fannie and Freddie were blocked
>> by Democrats along party lines in committee.
>>
>> My favorite quote is from Barney Frank when oversight was proposed.
>>
>> ”These two entities — Fannie Mae and Freddie Mac — are not facing any
>> kind of financial crisis,” said Representative Barney Frank of
>> Massachusetts, the ranking Democrat on the Financial Services
>> Committee. ”The more people exaggerate these problems, the more
>> pressure there is on these companies, the less we will see in terms of
>> affordable housing.”
>>
>>
>>
>
>When he said that in 2003 they were not, Bush changed the guide lines to
>force both to make risky loans
>the speech is available.
Ich bin ein Amerikaner knows it was said in 2003 which is exactly why
he didn't include it in the post.
Ich bin ein Amerikaner is getting all his wisdom from o'reilly who has
made a big deal out of the quote.
Ich bin ein Amerikaner get his advice from the right wing talk shows
he listen to like limbaugh and boortz.
Lots of people get all there advice from bootz and limbaugh and pawn
it off as 'original ideas'
Remember how BUSH's tax cuts need to be permanent or the entire
economy would collapse? Will those tax cuts are still in effect BUT
the economy is tanking.
The lower taxes bunch were wrong, dead wrong..
On Sun, 05 Oct 2008 20:20:58 -0400, Robert Blass <b...@m...xcx>
wrote:
>On Sat, 04 Oct 2008 03:46:45 GMT, Ich bin ein Amerikaner
><I...@S...com> sayd the following:
>
>>My favorite quote is from Barney Frank when oversight was proposed.
>>
>>”These two entities — Fannie Mae and Freddie Mac — are not facing any
>>kind of financial crisis,” said Representative Barney Frank of
>>Massachusetts, the ranking Democrat on the Financial Services
>>Committee. ”The more people exaggerate these problems, the more
>>pressure there is on these companies, the less we will see in terms of
>>affordable housing.”
>
>
>I bet you get all your wisdom from your hero O'reilly...
>good little doggie....
Can't refute what old Barney said eh?
Making little schoolyard taunts won't change it either amatuer.
'A government big enough to give you everything you want, is
big enough to take away everything you have.'
"You cannot enrich the poor by impoverishing the rich."
Robert Blass <b...@m...xcx> wrote in crayon...
>On Sat, 04 Oct 2008 03:46:45 GMT, Ich bin ein Amerikaner
><I...@S...com> sayd the following:
>
>>My favorite quote is from Barney Frank when oversight was proposed.
>>
>>”These two entities — Fannie Mae and Freddie Mac — are not facing any
>>kind of financial crisis,” said Representative Barney Frank of
>>Massachusetts, the ranking Democrat on the Financial Services
>>Committee. ”The more people exaggerate these problems, the more
>>pressure there is on these companies, the less we will see in terms of
>>affordable housing.”
>
>
>I bet you get all your wisdom from your hero O'reilly...
>good little doggie....
You cannot argue the points so you demonstrate what an idiot you are.
I see you have something in common with Barney Frank.
Good job, Blasshole.
-
If American Liberals hated al Qaeda as much as they
hated President G.W. Bush, we'd have the War on
Terrorism already beat.
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Takes "Open Mouth, Insert Foot" to an entirely new level
Bailout: What Really Happened on Wall Street
"Stocks drop on concern bailout won't help economy" - And a Nobel Prize is ready
The drama surrounding this bill is like a horror movie at the drive-in
Up